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US STOCKS-Dow surpasses 29,000 as investors look past weak jobs data

Published 10/01/2020, 16:44
Updated 10/01/2020, 16:45
© Reuters.  US STOCKS-Dow surpasses 29,000 as investors look past weak jobs data
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* U.S. job growth slows more than expected in December

* Apple, Qorvo, Skyworks up on positive broker comments

* Easing Iran tensions, trade hope spur risk-on mode

* Indexes up: Indexes: Dow 0.10%, S&P 0.19%, Nasdaq 0.28%

(Updates to open)

By Sruthi Shankar

Jan 10 (Reuters) - The Dow Jones Industrial Average on

Friday crossed the 29,000 mark for the first time, as gains in

technology and healthcare stocks offset concerns from a report

showing slower-than-expected U.S. jobs growth in December.

The main U.S. indexes opened at a record high despite

futures initially wobbling after government data showed U.S.

jobs increased by 145,000 last month, below the 164,000 rise

forecast by economists polled by Reuters. However, the pace of hiring remained more than enough to

keep the longest economic expansion in history on track despite

a deepening downturn in the manufacturing sector.

Friday's report also showed the jobless rate holding near a

50-year low of 3.5% and average hourly earnings rising 0.1% in

the previous month.

"This report is almost in line with consensus except for the

wage aspect. That was disappointing. I'm saying that because of

the need for the consumer to be (an) active participant in the

economy. But the market isn't going to focus on this," said

Quincy Krosby, chief market strategist at Prudential Financial

in Newark, New Jersey.

"This report is not enough to move the market one way or the

other."

The data also did little to change traders' expectations

that the Federal Reserve will hold interest rates where they are

for most of this year. MMT/

The S&P 500 banks index .SPXBK was down 0.2%.

Global stock markets resumed their record rally this week

after the United States and Iran backed down on further military

action following a standoff, and hopes of an initial U.S.-China

trade deal kept investors optimistic about economic growth in

2020.

At 10:21 a.m. ET the Dow Jones Industrial Average .DJI was

up 28.50 points, or 0.10%, at 28,985.40, the S&P 500 .SPX was

up 6.37 points, or 0.19%, at 3,281.07 and the Nasdaq Composite

.IXIC was up 26.13 points, or 0.28%, at 9,229.56.

Technology stocks .SPLRCT , the market leaders of the last

decade, were on track for sharpest gains among the 11 main S&P

sectors in the first full trading week of 2019.

Apple Inc AAPL.O rose 0.9% after Credit Suisse became the

latest brokerage to raise its price target on the stock, citing

better-than-feared iPhone 11 cycle so far.

Nvidia Corp NVDA.O rose 1.5% after Citigroup added the

stock to its "catalyst watch" list.

Healthcare stocks .SPXHC rose 0.4%, led by Intuitive

Surgical Inc ISRG.O , which reported a better-than-expected

quarterly sales.

With the fourth-quarter earnings season set to begin in

earnest next week, analysts expect profits for S&P 500 companies

to drop 0.6% in their second consecutive quarterly decline,

according to IBES data from Refinitiv.

Energy stocks .SPNY were a laggard, down 0.3%, as oil

slipped on easing Middle East tensions. O/R

Advancing issues outnumbered decliners by a 1.39-to-1 ratio

on the NYSE and a 1.31-to-1 ratio on the Nasdaq.

The S&P index recorded 54 new 52-week highs and no new lows,

while the Nasdaq recorded 70 new highs and nine new lows.

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